Question: Christy Eisenbeis is a cost analyst with Nations Insurance Company

Christy Eisenbeis is a cost analyst with Nations Insurance Company. Nations Insurance is applying standards to its claims payment operation. Claims payment is a repetitive operation that could be evaluated with standards. Christy used time and motion studies to identify an ideal standard of 24 claims processed per hour. The Claims Processing Department manager, Everett Boyle, has rejected this standard and has argued that the standard should be 18 claims processed per hour. Everett and Christy were unable to agree, so they decided to discuss this matter openly at a joint meeting with the vice president of operations, who would arbitrate a final decision. Prior to the meeting, Christy wrote the following memo to the VP.

To: Megan Wilkins, Vice President of Operations
From: Christy Eisenbeis
Re: Standards in the Claims Processing Department
As you know, Everett and I are scheduled to meet with you to discuss our disagreement with respect to the appropriate standards for the Claims Processing Department. I have conducted time and motion studies and have determined that the ideal standard is 24 claims processed per hour. Everett argues that 18 claims processed per hour would be more appropriate. I believe he is trying to “pad” the budget with some slack. I’m not sure what he is trying to get away with, but I believe a tight standard will drive efficiency up in his area. I hope you will agree when we meet with you next week.
Discuss the ethical and professional issues in this situation.

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  • CreatedFebruary 04, 2014
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